The Role and Responsibilities of Being a Local Unit PTA Treasurer SCPTA Leadership Convention 2014

Transcription

1 The Role and Responsibilities of Being a Local Unit PTA Treasurer SCPTA Leadership Convention 2014

2 Cha-Ching! More than Counting Dollars! The Roll and Responsibility of the PTA Treasurer. Moderator: David DuBose, SCPTA Treasurer Facilitators:Perky Dean, District I Treasurer and Mauldin High School Treasurer Brett Simmons, Treasurer, Buena Vista Elementary School Christi Yenser, Treasurer, Oakview Elementary School

3 So, Now You re the Treasurer He who holds the purse strings.holds the power. With that power comes much responsibility! Not just to your board, but to the entire membership of your school, and also, to the IRS. Becoming familiar with all resources available to you will give you the confidence you need to handle your position as Treasurer for your local Unit, Council or District. The information given in this workshop is only an overview of what you will need to be successful. Being the PTA Treasurer is an important role and it varies from elementary to high school. We want to help you learn and gain confidence in the best practices for deposits, check requests, and filing required PTA and IRS paperwork. Being familiar with the resources available to you will ensure a successful term as Treasurer for your local PTA unit.

4 The Mission of PTA To support and speak on behalf of children and youth in the schools, in the community, and before governmental bodies and other organizations that make decisions affecting children; To assist parents in developing the skills they need to raise and protect their children; To encourage parent and public involvement in the public schools of this nation.

5 PTA Purpose Promote the welfare of children and youth in the home, school, community, and place of worship. To raise the standards of home life. The secure adequate laws for the care and protection of children and youth. To bring into closer relation the home and the school so that parents and teachers cooperate intelligently in the education of children and youth. Develop united efforts between educators and general public to secure for all children/youth the highest advantages in physical, mental, social, and spiritual education.

6 Who does what on PTA? Treasurer: Responsible for the fiscal policy for protection of PTA funds. Receives and disburses monies. MUST FOLLOW PTA GUIDELINES ON THIS!!! Prepares the budget with rest of Executive Committee or designated budget committee where available. Submits monthly treasurer s report and posts publicly. Prepares and submits annual financial review for SCPTA AND the annual IRS 990 filing.

7 The Budget Your budget is an outline of the estimated income and expenses for your unit s fiscal year, July 1 June 30 of the current school term. A finance or budget committee usually has the responsibility of developing a budget for the PTA. The prior year s budget should be considered to ensure that carryover funds are included. Carryover funds allow for the operation of the unit until fundraising events are held for the current year. The budget should be as detailed as possible so that it is clear what the income and expense categories are. The PTA budget should not include funds for food or events for the board unless this is CLEARLY outlined and approved by the general membership. Consider the PTA s stated goals and planned activities to ensure a solid budget. Clear and open communication is a must between the board and the committee to ensure that the working budget meets the needs and goals of the unit. The budget should show the allocated expenditures for the year s activities, as well as the funds on hand and the anticipated receipts. Expenditures should equal receipts. The drafted budget should be presented to the board/executive committee for consideration and then to the PTA membership for approval. This presentation is made during the organization s general meeting where a quorum is determined to be present. A majority vote of the members present and voting is required for adoption. The budget should be posted on line, in the meeting facility and passed out, so that the general membership can review it item by item to allow for discussion and necessary amendments. Funds should not be spent until the budget is approved. Present the updated YTD income and category expenditures at each board meeting and regular meeting. The budget is only an estimate of the planned expenditures for the year. The budget may be amended by a vote of the association at any regular meeting or at a special meeting called for that purpose. To amend a budget item previously adopted, it is necessary to have a twothirds vote; with previous notice, a majority vote.

8 PTA Fundraising and Programs IRS regulations require 3 programs for members to each fundraiser held. Fundraisers should be set based on parent involvement, interest and what the needs of the school are that PTA can legitimately support from the fundraisers. Presidents usually will talk to several fundraiser groups and make recommendations to the general board based on what the board has decided are the priorities for that school year.

9 Sales Tax and Charitable Contributions Sales Tax Exemption Local Units in good standing are sales tax exempt on items purchased for resale only under SC PTA Sales Tax Exemption Number. Your local units should have a copy of this tax exemption certificate on file. Do not loan this number to anyone. It cannot be used by any organization other than your PTA. Some fund raising companies are now requiring a letter from the SC PTA Office confirming that a local unit is eligible to use the tax-exempt number. If you are asked for such a letter, call the SCPTA office, and we will be glad to furnish one. Charitable Contributions Greater than $75 Goods or Services Returned to Donor Money Matters Book Contribution of Cash No Goods or Services Returned to Donor Money Matters Book

10 Financial Best Practices: Audit last year s books Change the signatures at the bank Have at least three signatures on file this prevents one officer from signing off on a check request for themselves. Require receipts (clean receipts) for all reimbursement requests use the appropriate form Budget can be amended by a vote of the general membership State and National Dues sent monthly to state

11 Banking Handling Funds, Bank Statements, Treasurer Reports The treasurer is the authorized custodian, elected by the members, of the funds of the PTA association. Funds are to be counted by at least one board member and another person. Deposit form: signed off on by the two counters and given to treasurer for deposit. All money should be deposited on the same date of collection. Use police escort if necessary. Banking statements: reviewed by a non-signer. This reviewer must sign/initial the statement. All written and voided checks must be accounted for. Treasurer reports: presented at each meeting, even if the treasurer is not able to be in attendance. Address income, expenses and budget standing at each meeting.

12 Frequently Asked Questions about Budgets: Who determines when and how to spend the money? How do we get an audit committee and who serves on it? Whose money can be deposited in the PTA account? At the end of the school year, can the board determine what to do with money left in the budget? How do we determine how much money can be spent on board members to attend leadership training, workshops, etc.

13 The PTA Audit PTA books should be audited if a financial officer resigns, before the new treasurer assumes his or her duties, and at any other time deemed necessary. Copy of last financial Review and deposit transactions Bank statements Treasurer s books or ledger Annual report form Itemized statement and bills paid Check Requests Copies of board, executive committee, and organization minutes that would include an adopted budget, as well as any amendments that were approved during the year.

14 PTA Tax Filings: Accounting period is July 1 to June 30 th Tax filings are due November 15 th Form used is determined by your gross receipts Failure to file annually can result in revocation of your 501c3 status Call Lorene Welch, SCPTA Executive Director if you have IRS letters received. Call District 1 treasurer or Council treasurer if you need assistance determining which form to use.

15 PTA Tax Filings, Page 2 Who Must File? A PTA with gross receipts of $50,000 of less from 6/30 7/1 must file 990-N. (e-postcard) A PTA with gross receipts of over $50,000 but less than $200,000 must file Form 990EZ. You may also have to file certain IRS Schedules. A PTA with gross receipts over $200,000 should consider the services of a professional accountant to fill out the 990 with the required schedules. Gross Receipts means ALL PTA revenue, excluding any money carried over from the previous year and State and National Dues collected and remitted.

16 Insurance Liability Insurance find out what your school district requires to operate at their facilities. Recommended that you carry D & O insurance. Amount can be recommended to you by A.I.M. or other insurance carrier. Some tips on insurance best practices: Monthly treasurer s reports Monthly review of bank statements Annual financial review and IRS filings

17 Handling Conflict: If you have concerns about a board member: Talk to that board member in private Listen with empathy Solicit suggestions from the board member for resolution Maintain confidentiality Call on your Council or District for help If a board member needs to be removed: Talk to them first and see if they recognize the need to resign Discuss with executive board the reasons for removal Maintain confidentiality for the member and board s benefit. Have a replacement identified and agreed to by the board.

18 Financial questions to ask All board members should receive an updated copy of the budget/financial report. Are there two non-check signing people reviewing and signing the original bank statement every month Should be at least 3 signors on the account (best practice: president, treasurer, and one other readily-available board member) President and Treasurer should both sign and date their copy of each deposit slip and keep in a separate log book Never hesitate to ask to see the treasurer books or to have them reviewed by Council/District treasurer if warranted. Has bonding insurance been paid? Has financial review and IRS 990 been filed?

19 Workshop II A.I.M Insurance We have a representative from A.I.M that will highlight the importance of insurance for our units.

20 Summary In a nut-shell, you are in charge of a non-profit organization. Being a treasurer requires meticulous accounting and organization skills to help facilitate accurate record keeping and timely handling of accounts receivable and payable transactions. The use of quick books or some other automated system will greatly increase your success in maintaining an efficient workflow as a treasurer. Consider having an assistant-treasurer so that duties can be split to further allow for efficiency as treasurer for your unit.

21 Questions Resources: National PTA and SCPTA offers the PTA toolkit for free as an e-download with lots of great resources for all members of your board of directors. Other ideas/suggestions share what s worked at your unit.